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A £26.3 million equivalent loan backed by the UK Government has allowed the Ukrainian government to start rebuilding six bridges and reopen vital supply routes near Kyiv.
The loan has been announced as part of the Ukraine Recovery Conference, which is being held in London on 21 to 22 June and has brought together the public and private sectors to discuss how to accelerate and support the reconstruction of Ukraine.
In an unprecedented transaction from any export credit agency, UKEF has agreed to issue a buyer credit loan guarantee that allows the Ukrainian government to access financing from Citi, unlocking crucial funds for Kyiv Oblast’s Road Service.
Russia’s indiscriminate and barbaric attacks on Ukraine have destroyed vital transport routes, critical national infrastructure, and the livelihoods of thousands of people.
The reconstruction of the bridges ranges from those hit by shrapnel to those which have been completely destroyed, and will ensure that the people and government of Ukraine can once more use critical transport links around the capital.
Nusrat Ghani, Minister of State at the Department for Business and Trade, said:
“It is vital that we help Ukraine repel Putin’s invasion and return as a more prosperous, more resilient economy. Export credit is one part of over £4.7bn in non-military assistance which the UK has provided to Ukraine, and the backing of UK Export Finance is another step towards recovery.”
Sergii Marchenko, Ukraine’s Minister of Finance, said:
“Russia’s war against Ukraine has caused enormous damage to Ukraine’s infrastructure. The UK Government’s financial support for restoring these bridges is a significant contribution to the Ukrainian government’s recovery efforts.
“It will help to accelerate trade turnover, thereby creating better conditions for business development since Kyiv serves as the nation’s important logistics hub. It moreover fosters a conducive environment for Ukrainians to return home to, which is vital for the sustained operation of the country’s economy and its further recovery.”
The conference aims to unlock the potential of the private sector in driving Ukraine’s economic recovery, building on collaborations like this deal involving UKEF and Citi.
This financial backing also enables the reconstruction project to draw upon support from UK manufacturers, who are expected to supply steel components, critical materials and design services to principal contractors Onur Group and Doğuş. This will in turn support UK jobs and help deliver on the Prime Minister’s priority of growing the economy.